Gold Price Slumps as Oil Surge Fuels Rate Hike Fears

Gold prices dropped below $4,100 on July 24, after a previous session's slide. The precious metal declined due to rising crude oil prices and fears of rate hikes.

The spot gold price fell by 0.2%, or $8, to trade at $4,042.47 per ounce. Silver also slipped, losing 0.2% to $57.5 per ounce.

Despite the drop in Friday's session, both metals are still on track to post weekly gains.

The oil price surge has intensified inflation concerns, boosting expectations of further interest rate hikes and putting pressure on non-yielding assets like gold.

The rise in crude prices came after the US military reportedly carried out strikes on Iran for the 13th consecutive night. This increased tensions between the two countries.